The Hindu Business Line : VRS for general insurance staff

IN an attempt to rationalise the manpower existing in the four general insurance companies, of New India Assurance, National Insurance, United India Insurance and Oriental Insurance, the Government has announced a special Voluntary Retirement Scheme (VRS).

The scheme will be applicable to Class I, III and IV employees. Earlier VRS was offered to Class II employees, who were basically development officers in-charge of marketing the insurance products.

According to an official statement, all permanent full-time employees who have attained the age of 40 years and completed 10 years of qualifying service are eligible to seek the special VRS.

The employees would be given 60 days of salary for each completed year of service or salary for the number of months of remaining service whichever is lower. Also about 50 per cent of the ex-gratia amount would be paid in cash and the balance could be either in cash or in instalments, which would be decided by the board of the companies.

The release also added that vacancy caused due to special VRS would not be filled up and the posts would be considered abolished, except those of Assistant General Managers and above.

However, the companies would be allowed to redeploy employees to ensure that they continue to function efficiently. The VRS scheme has taken into account recommendations by various committees including the General Insurers (Public Sector) Association.

The Government had formalised the VRS proposal about a month back, but was awaiting a response from the boards of the companies.

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